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Mounds View EDA April 26, 2021 Regular Meeting Page 3 Ayes – 5 Nays – 0 Motion carried. 1 2 7. REPORTS 3 4 Assistant City Administrator Beeman reported he has been negotiating on the EDA lot next to 5 Simon’s. He explained the letter of intent has being going back and forth and was nearing 6 completion. He reported both parties were in agreement on the selling price. He indicated the 7 main sticking point at this time was the escrow. 8 9 City Attorney Riggs stated most of the issues have been resolved reasonably well per the 10 direction of the EDA. He explained typically, the EDA has had some type of escrow or deposit 11 in place that was non-refundable given the amount of time that is required. He reported staff was 12 recommending an escrow in the amount of $5,000 and the other party has stated this will kill the 13 deal. It was his understanding that the Simon’s property owner has agreed to not have an escrow 14 as a down payment. He indicated staff could support this, but wanted to make sure the EDA also 15 supported this recommendation. 16 17 President Mueller asked what does a non-refundable escrow mean. City Attorney Riggs reported 18 this was viewed as a deposit for tying up the land. He noted the deposit could then be applied to 19 the purchase price or the EDA gets to keep a portion of it. He commented it was staff’s 20 recommendation that a deposit or escrow be established given the amount of time the property 21 would be held. He indicated the Simon’s property owner has backed off from this request 22 because the purchaser has balked at the request. He stated this was a negotiable matter. 23 24 President Mueller inquired what a significant amount of time would be. City Attorney Riggs 25 reported the property could be tied up for three-fourths of the year or 240 days. 26 27 President Mueller questioned if the building on the site would be torn down. Assistant City 28 Administrator Beeman stated this was the case, noting the purchaser has proposed to tear down 29 the building. He explained at this time all parties were in agreement in all aspects of the 30 purchase, except for the non-refundable escrow. 31 32 President Mueller asked if staff was seeing any red flags regarding the easements and other rules 33 that must be followed for the new development. Community Development Director Sevald stated 34 the Donnelly Stucco property has several easements that must be worked out between the two 35 property owners. He noted there was also still a question about whether or not the city would 36 require additional right of way at the intersection. 37 38 President Mueller inquired if a dangerous precedent would be set if the EDA were to move 39 forward without requiring an escrow on this purchase. City Attorney Riggs stated this does 40 bother him a little bit, but did not believe a precedent would be set. He explained this purchase 41 was a unique because it was tied to another property that has already agreed to waive the escrow. 42